Quote:
Originally Posted by nmulax
Management needs to be overhauled, obviously the people that are in charge don't have the desire to do their job without the private jets, golden parachutes, and other perks they get. Nor do they have the guts to stand up to the Union.
The Union needs to be broken up - the guy working on the line is not worth $30/hr. If GM were to close, his qualifications would likely put him in a job that makes between $8-15/hr. Legacy cost are an endless void that money is poured into. Why should someone who retired 20 years ago still receive medical benefits? GM needs to start acting like a business, and not a parent.
R&D needs better planning. The Volt for example, was a complete rush job - hell, the concept was shown prior to being wind tested. It wasn't till after the excitement over its looks had built that GM announced it was aerodynamically in-efficient. Plus, nobody seems to want to discuss the infrastructure for electric cars or long-term costs. Not saying alternative fuels don't need to be investigated - but there's much to be said from learning from other's mistakes, you don't always need to be the first to do something.
The problem with Chapter 7, Liquidation, is the impact on our already down economy. That could be the catalyst for sending us from a recession to a depression. The 1.6M jobs that would be lost is the direct employees, suppliers, and dealer network.
But if 1.6M people don't have an income, they won't be going out for dinner, to the bar, or on vacations, so the service and travel industries suffers. The media industry looses huge revenue from advertising cuts (and with less ads, come less designers/art directors/etc). So with nobody spending money, and with the financial sector being as locked down as they are currently, where does the money come from to be pumped back into the economy?
IMO the best solution is either a government take-over, or a bail-out with much fine-print outlining requirements.
Interesting chart showing just where the effects would hit hardest.
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I agree with a lot of what you are saying, but the question is, will a bailout create a product that will sell? All the fine print in the world won't do crap if the product doesn't sell to start, this goes back to something as simple as ROI. This bail out has no ROI or potential to 'save' them it's just more money in the hands of people that cannot do the job to start and that is NOT just the management. That goes to the employees on the line who put things together poorly, the QA (or lack of), the designers, the advertisers, the engineers who are dead last with technology and fuel efficiency.
If we do a bail out (and yes WE, the semi affluent, will pay for it) all we are doing is paying the same groups money to keep doing what they are doing.
A free market dictates that a poor product will not be bought. Make a good product, at a competetive price and all of a sudden you have sales. If you exchange a product that is of a greater value to the consumer than the cost you have given them a deal, if it is rock solid then you have a customer for life.
So much of their money is wasted on trying to get customers that at one time did buy their products and regretted it, thus 'will never buy a car from them again'.
I used to own a Volvo s40. I have also owned an f350 and an Excursion. The volco was slow, gutless and I was getting 23.5 mpg on average. The stereo would starting scanning on it's own as if possessed and spit out all of my CDs one time while I was driving. These are PROBLEMS and they kept happening after I got the car serviced. Oh, and Ford does not offer a loaner when you need to leave your car for warranty work, so I would have to rent. 5 times in the dealer in 10k miles (and I do 100 miles a day). I was heart broken and it was costing my oodles of cash to rent cars while they spent days 'diagnosing' etc.
I then drove my friends 3 series. She happens to do the exact drive I do and she was getting 28 mpg average but was up 55hp over the Volvo. Next day I traded the car in and bought a 3. I now get 25.2 average and I drive like a bat out of hell on the I5. NOT ONE PROBLEM.
The point is BMW made a great product. Volvo didn't. Ford owns Volvo. Had they not turned out a crappy product, I would buy from the again. The excursion had wheel bearings going out every 10K and at $600 a piece for labor and parts that gets expensive. My f350 diesel was a money pit after 150K miles. Engine rebuild, tranny rebuild (it was a manula), clutch, DM flywheel, wheel bearings, heater core, AC, more sensors then I can name. And this was at 150,000 miles!
You build crap, you lose customers. Who wants to buy a car that will depreciate like a brick, is really expensive to drive (but is not any funner than the next), and wonder all the way how much the next bill is going to be.
The free market has spoken. Darwanism has won.
R.I.P.